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More Record-High Closes; Hot Q3 Earnings: PYPL, AMC & More (revised)

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All four major indexes have once again set new all-time record closing highs, albeit slightly: gains were minuscule on the S&P 500 and the Nasdaq, but that’s to be expected after a rally now going into its fifth consecutive week. The Dow led the way, +0.28% to 36,431; the S&P was +0.09% to cross north of 4700 for the first time; the Nasdaq gained +0.07% to 15,982 and the small-cap Russell 2000 +0.23% to 2442.

PayPal (PYPL - Free Report) shares were up 4% immediately following its mixed Q3 earnings report Monday afternoon, which saw the digital payment major beat expectations on its bottom line by 4 cents to $1.11 per share, while sales in the quarter of $6.18 billion missed the $6.21 billion in the Zacks consensus. The company’s Take Rate — an important metric in the digital payment industry — disappointed at +1.8%. The company’s difficulties with former parent eBay (EBAY - Free Report) continue.

Yet PayPal also announced a new deal with Amazon (AMZN - Free Report) , which will allow customers in the U.S. to use Venmo to conduct transactions. Venmo currently has more than 80 million users. This connection looks to be a good enough development for investors to look past the company’s issues with eBay and its strategy to abandon its plan to acquire Pinterest (PINS - Free Report) .

Meme-stock extraordinaire AMC Entertainment (AMC - Free Report) also put up mixed numbers in its Q3 report Monday after the closing bell, missing on the bottom line by two cents to -44 cents per share on $763 million in revenues, which outpaced the expected $758.67 million. The company welcomed 40 million guests in the quarter, but CEO Adam Aron cautioned the company is not yet back where it expects to be. Shares, which had been +8% ahead of the Q3 report, are down -1.25% in late trading. Year to date, however — even off the gigantic heights of earlier in the year, when the share price traded above $70 — AMC is still up over 2,100%.

California video game developer Roblox (RBLX - Free Report) has put up its first positive surprise on its bottom line since going public, and as a result, the stock has shot up 25% in late trading. A bottom line of -13 cents per share beat the Zacks consensus by 3 cents on $637.8 million in quarterly sales, which easily eclipsed the $619.8 million expected. Daily Active Users (DAU) came in ahead of estimates: 47.3 million versus 46.7 million. Shares had been up only 10% year to date; today’s Q3 report changes that.

TripAdvisor (TRIP - Free Report) missed expectations on both top and bottom lines this afternoon: 16 cents per share on $303 million in revenues were notably behind the Zacks consensus 24 cents per share and $310.7 million, respectively. CEO Steve Kaufer will also be stepping down in 2022; no replacement has yet been named. Shares are -10% on the news in the late session. TRIP has now posted 13 earnings misses over the past five years.

 

(NOTE: We are reissuing this article to correct an error. The original version, posted yesterday, November 8, 2021, should no longer be relied upon.)

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